Is Corus Entertainment Inc.'s (TSE:CJR.B) CEO Pay Fair?
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In 2015 Doug Murphy was appointed CEO of Corus Entertainment Inc. (TSE:CJR.B). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Corus Entertainment
How Does Doug Murphy's Compensation Compare With Similar Sized Companies?
According to our data, Corus Entertainment Inc. has a market capitalization of CA$1.7b, and pays its CEO total annual compensation worth CA$4.1m. (This figure is for the year to August 2018). While we always look at total compensation first, we note that the salary component is less, at CA$900k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$1.3b to CA$4.3b. The median total CEO compensation was CA$3.1m.
So Doug Murphy is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Corus Entertainment has changed over time.
Is Corus Entertainment Inc. Growing?
Over the last three years Corus Entertainment Inc. has shrunk its earnings per share by an average of 107% per year (measured with a line of best fit). In the last year, its revenue changed by just 0.1%.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Corus Entertainment Inc. Been A Good Investment?
Since shareholders would have lost about 15% over three years, some Corus Entertainment Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Doug Murphy is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Corus Entertainment (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
